[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3649 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 3649

 To expand the Officer Next Door and Teacher Next Door initiatives of 
    the Department of Housing and Urban Development to include fire 
         fighters and rescue personnel, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 13, 2011

   Mr. Baca introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
 To expand the Officer Next Door and Teacher Next Door initiatives of 
    the Department of Housing and Urban Development to include fire 
         fighters and rescue personnel, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Community Partners Neighborhood 
Preservation Act of 2011''.

SEC. 2. COMMUNITY PARTNERS NEXT DOOR PROGRAM.

    (a) Congressional Findings.--The Congress finds that--
            (1) teachers, law enforcement officers, fire fighters, and 
        rescue personnel help form the backbones of communities and are 
        integral components in the social capital of neighborhoods in 
        the United States; and
            (2) providing a discounted purchase price on HUD-owned 
        properties for teachers, law enforcement officers, fire 
        fighters, and rescue personnel recognizes the intrinsic value 
        of the services provided by such employees to their communities 
        and to family life and encourages and rewards those who are 
        dedicated to providing public service in our most needy 
        communities.
    (b) Discount and Downpayment Assistance for Teachers.--Section 
204(h) of the National Housing Act (12 U.S.C. 1710(h)) is amended--
            (1) by redesignating paragraphs (7) through (10) as 
        paragraphs (8) through (11), respectively; and
            (2) by inserting after paragraph (6) the following new 
        paragraph:
            ``(7) 50 percent discount for teachers and public safety 
        officers purchasing properties that are eligible assets.--
                    ``(A) Discount.--A property that is an eligible 
                asset and is sold, during fiscal years 20__ through 
                20__, to a teacher or public safety officer for use in 
                accordance with subparagraph (B) shall be sold at a 
                price that is equal to 50 percent of the appraised 
                value of the eligible property (as determined in 
                accordance with paragraph (6)(B)). In the case of a 
                property eligible for both a discount under this 
                paragraph and a discount under paragraph (6), the 
                discount under paragraph (6) shall not apply.
                    ``(B) Primary residence.--An eligible property sold 
                pursuant to a discount under this paragraph shall be 
                used, for not less than the 3-year period beginning 
                upon such sale, as the primary residence of a teacher 
                or public safety officer.
                    ``(C) Sale methods.--The Secretary may sell an 
                eligible property pursuant to a discount under this 
                paragraph--
                            ``(i) to a unit of general local government 
                        or nonprofit organization (pursuant to 
                        paragraph (4) or otherwise), for resale or 
                        transfer to a teacher or public safety officer; 
                        or
                            ``(ii) directly to a purchaser who is a 
                        teacher or public safety officer.
                    ``(D) Resale.--In the case of any purchase by a 
                unit of general local government or nonprofit 
                organization of an eligible property sold at a 
                discounted price under this paragraph, the sale 
                agreement under paragraph (8) shall--
                            ``(i) require the purchasing unit of 
                        general local government or nonprofit 
                        organization to provide the full benefit of the 
                        discount to the teacher or public safety 
                        officer obtaining the property; and
                            ``(ii) in the case of a purchase involving 
                        multiple eligible assets, any of which is such 
                        an eligible property, designate the specific 
                        eligible property or properties to be subject 
                        to the requirements of subparagraph (B).
                    ``(E) Mortgage downpayment assistance.--If a 
                teacher or public safety officer purchases an eligible 
                property pursuant to a discounted sale price under this 
                paragraph and finances such purchase through a mortgage 
                insured under this title, notwithstanding any provision 
                of section 203 the downpayment on such mortgage shall 
                be $100.
                    ``(F) Prevention of undue profit.--The Secretary 
                shall issue regulations to prevent undue profit from 
                the resale of eligible properties in violation of the 
                requirement under subparagraph (B).
                    ``(G) Definitions.--For the purposes of this 
                paragraph, the following definitions shall apply:
                            ``(i) The terms `elementary school' and 
                        `secondary school' have the meanings given such 
                        terms in section 9101 of the Elementary and 
                        Secondary Education Act of 1965 (20 U.S.C. 
                        7801), except that, for purposes of this 
                        paragraph, elementary education (as used in 
                        such section) shall include pre-Kindergarten 
                        education.
                            ``(ii) The term `eligible property' means 
                        an eligible asset described in paragraph (2)(A) 
                        of this subsection.
                            ``(iii) The term `public safety officer' 
                        means an individual who is employed on a full-
                        time basis as a public safety officer, as such 
                        term is defined in section 1204 of the Omnibus 
                        Crime Control and Safe Streets Act of 1968 (42 
                        U.S.C. 3796b).
                            ``(iv) The term `teacher' means an 
                        individual who is employed on a full-time 
                        basis, in an elementary or secondary school, 
                        as--
                                    ``(I) a State-certified or State-
                                licensed classroom teacher; or
                                    ``(II) an administrator.
                        Such term does not include any administrator 
                        of, or any contractor for, a local educational 
                        agency whose place of employment is not a 
                        public elementary or secondary school.''.
    (c) Conforming Amendments.--Section 204(h) of the National Housing 
Act (12 U.S.C. 1710(h)) is amended--
            (1) in paragraph (4)(B)(ii), by striking ``paragraph (7)'' 
        and inserting ``paragraph (8)'';
            (2) in paragraph (5)(B)(i), by striking ``paragraph (7)'' 
        and inserting ``paragraph (8)''; and
            (3) in paragraph (6)(A), by striking ``paragraph (8)'' and 
        inserting ``paragraph (9)''.
    (d) Regulations.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary shall issue regulations to 
implement the amendments made by this section.
    (e) Sense of Congress Regarding Inclusion of Other Federal 
Properties in Community Partners Next Door Program.--It is the sense of 
the Congress that the Secretary of Housing and Urban Development should 
consult with the heads of other agencies of the Federal Government that 
own or hold properties appropriate for use as housing to determine the 
possibility and effectiveness of including such properties in the 
program pursuant to section 204(h)(7) of the National Housing Act, and 
other programs that make housing available for law enforcement 
officers, teachers, or fire fighters.

SEC. 3. ELIGIBILITY OF COMMUNITY PARTNERS FOR PURCHASE OF HUD-ACQUIRED 
              PROPERTY.

    Notwithstanding any other provision of law, a public safety officer 
or teacher (as such terms are defined in section 204(h)(7)(G) of the 
National Housing Act (as amended by section 2 of this Act)) shall be 
eligible to purchase any property owned or held by the Secretary of 
Housing and Urban Development pursuant to foreclosure of any mortgage 
insured by the Secretary or pursuant to assignment of the mortgage, 
deed in lieu of foreclosure, conveyance of title, or any other 
acquisition of the property or mortgage in connection with the payment 
of insurance benefits by the Secretary.

SEC. 4. RELEASE OF SECOND MORTGAGE FOR LAID-OFF COMMUNITY PARTNERS 
              UNDER GOOD NEIGHBOR NEXT DOOR INITIATIVE.

    The Secretary of Housing and Urban Development shall revise the 
Good Neighbor Next Door Initiative of the Secretary to provide that the 
subordinate mortgage on the property of a mortgagor who purchased a 
property under such initiative shall be released in any case in which 
the mortgagor loses his or her employment position as a law enforcement 
officer, teacher, firefighter, or emergency medical technician as a 
result of any reductions in force or other reason other than dismissal 
for cause.

SEC. 5. PREFERENCE UNDER HUD REO PROGRAM FOR COMMUNITY PARTNERS.

    The Secretary of Housing and Urban Development, in making any real 
estate owned of the Department of Housing and Urban Development 
available for purchase, shall provide a preference for purchase by 
public safety officers and teachers (as such terms are defined in 
section 204(h)(7)(G) of the National Housing Act (as amended by section 
2 of this Act)).
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